As sectors and market categories begin to diverge, an actively managed small-cap exchange traded fund could focus on potential alpha generating opportunities ahead.
On the upcoming webcast this Tuesday, Active & Passive in a Simple Small-Cap ETF Discipline, Michael Simon, Founder, President and Chief Investment Officer of AlphaMark, will discuss ways to tap into potential opportunities through the small-cap segment of the market.
Actively managed small-cap managers have more consistently outperformed their benchmarks over the years. For instance, over the first quarter, 80% of active core small-cap funds beat their benchmark and 68% of value managers outperformed, CNBC reported.
“With high quality continuing to outperform year-to-date, small cap active managers have benefited given their high quality bias – the opposite of large-cap managers,” Savita Subramanian BofAML’s equity and quant strategist said in a note.
For example, as of 03/31/2016, the AlphaMark Actively Managed Small Cap ETF (NasdaqGM: SMCP) rose 1.3% year-to-date while the Russell 2000 Index dipped 0.2%.
SMCP filled a hole in the AlphaMark fund line up after the firm terminated the AlphaMark Small Cap Growth Fund (AMSCX) back in April 2015.
The active small-cap ETF focuses on companies with a market-cap of between $150 million and $2 billion. While the main focus of the ETF is U.S. small-caps, SMCP can also hold up to 30% of net assets in foreign small-cap equity securities traded on a U.S. exchange as ADRs.